Qualcomm Fined $854 Million by South Korean Regulator
By MEHER ONISA : 28-Dec-2016
Qualcomm Inc, a major US chipmaker was fined by a South Korean antitrust regulator with a largest ever sum of $854 million for being unfair in its business practices under patent licensing and modem chip selling.
The penalty was charged on the chip manufacture at a time when the business is actually facing headwinds from a cooled off smartphone market.
Qualcomm replied that it will file an immediate petition in the Seoul High Court to seek corrective order.
According to the Korea Fair Trade Commission (KFTC), Qualcomm had been mastering its dominant market position and forced handset makers to pay royalties upon Code Division Multiple Access, CDMA single chip modem solutions.
Shin Young-Son, the Secretary General of the KFTC decoded that the body had been vigilant in Qualcomm’s deliberate malpractices since in 2014.
The regulators complaint that Qualcomm had been restricting competition by limiting licensing of its patents modem chips to its tech-rivals such as Apple Inc, Samsung Electronics Co Ltd, Intel Corp, and MediaTek Inc which resulted in thinning of their sales drastically. Furthermore, they had ordered Qualcomm to come for negotiation in good faith.
Apart from South Korea there are other jurisdictions including the United States and Taiwan that are simultaneously investigating Qualcomm.